Knesset Supports New Economic Policy; Approves Compulsory Savings

May 29, 1962

JERUSALEM (May. 28)

Israel’s Knesset (Parliament) today voted support of the Governments new economic policy, including compulsory savings, worked out as the result of Israel’s devaluation of the pound last February. The vote was 56-39.

A stormy debate preceded the adoption of the motion supporting the new policy, most of the fire being directed at the compulsory savings plan proposed by Finance Minister Levi Eshkol.

The latter staunchly defended the plan, insisting the funds derived from the forced savings will not be used for current expenditures, but will be impounded in the State bank to keep down money circulation and, thereby, prevent inflation. He told the Knesset that the savings will be refundable after three years.